Europeans still take a dim view of the euro

bbj.hu

Monday, January 29, 2007, 13:39

An overwhelming majority of citizens in the big eurozone countries believe the euro has damaged their national economies, highlighting the popular scepticism that still surrounds Europe’s eight-year-old monetary union.

More than two-thirds of the French, Italians and Spanish – and more than half of Germans – believe the single currency has had a „negative impact”, according to an FT-Harris poll. In France, just 5% said the euro has had a positive effect on the French economy. The results will disturb the European Central Bank, which has faced stiff criticism in recent weeks from both Ségolène Royal and Nicolas Sarkozy, the main candidates in April’s French presidential elections, who accuse the central bank of hampering growth. The ECB regards its public credibility, and that of the euro, as essential to its battle against inflation, which is sees as the prerequisite for growth. The survey also shows that most adults in the largest European countries think migration has reduced wages and only a quarter have a positive view of the entry into the European Union this year of Bulgaria and Romania. However, eurozone citizens generally see wider benefits of the euro.

More Germans, Italians and Spanish see a positive impact on the EU economy than a negative effect, according to the survey. That suggests they see others benefiting rather than themselves. The exceptions are the French, more of whom see a negative rather than positive impact. The results come at a time when eurozone growth prospects have brightened, thanks largely to a pick-up in Germany, the largest of the region’s 13 member countries. The ECB is expected next week to prepare financial markets for another interest rate increase in March. Hermann Remsperger, executive board member at the Bundesbank, told the Financial Times in an interview that Germany’s recovery was „not a one-year wonder”. He added: „We are actually seeing a classical economic recovery. First, exports increased, then investment joined in and now we have the first signs of a slight improvement in private consumption. On top of that, the recovery has now reached the labour market.

The structure of the recovery alone suggests it will be a longer-lasting process.” Nevertheless, more than half of citizens in countries using the euro say they prefer their former national currency, according to the poll of 5,314 adults in Germany, the UK, France, Spain and Italy, which was conducted between January 10 and January 22. Almost two-thirds of Germans say they preferred their former currency, the D-Mark. In spite of the strong eurozone economy, fewer than half of adults in full-time or part-time employment expected a pay rise this year – but the British and Spanish were more optimistic. (Financial Times)

Turnover via electronic payment methods continued to rise strongly in 2017, according to data released on Monday by the National Bank of Hungary (MNB). The payment card acceptance network grew by 25%, while 83% of POS terminals supported contactless payment.

Toy stores expect record revenues this year in the Easter period, according to distributors. Although web store revenues are growing, most parents are still buying Easter presents in traditional stores.

Hungarian shipping company Mahart Zrt. will soon call a public procurement tender for the construction of a HUF 2.2 billion liquefied natural gas (LNG) terminal at the Port of Csepel on the Danube in the south of Budapest, business daily Világgazdaság reported on Monday.

In a surprise move, the National Bank of Romania has rejected a request for approval by the Romanian unit of Hungaryʼs OTP Bank to acquire 99.28% of Banca Românească from the National Bank of Greece, the lender said in a disclosure posted on the website of the Budapest Stock Exchange (BÉT) early on Monday.

Revenues of the local unit of German automobile manufacturer Audi edged up 1% to EUR 7.136 billion in 2017. Capital expenditures were up 45% at EUR 442 million last year, while the local unitʼs headcount climbed 5.8% to 12,307.

The National Bank of Hungary (MNB) allocated HUF 50 billion of its monetary policy interest rate swaps (MIRS) designed to flatten the yield curve at a tender on Wednesday, state news wire MTI reported.

The Monetary Council of the National Bank of Hungary (MNB) said it would continue to use its extended set of monetary policy instruments, without making any mention of future "fine-tuning," in the minutes from its policy meeting on February 27.

Manuscripts by the 19th century Hungarian composer Ferenc (Franz) Liszt, long thought lost, have been returned to the Liszt Memorial Museum and Research Center after being discovered in a private collection. The music is closely related to Hungary and the Revolution of 1848.

Erbslöh Hungária, a unit of German automotive group WKW, will spend HUF 14 billion to build a 1,500 square-meter production hall and install new surface treatment technology, increasing capacity, in Győr (121 km northwest of Budapest).